Sunday, November 20, 2011

NEWS ALERT The Retail Battle Of The Decade - With Retail Stores As Collateral Damage

Last week, AdAge reported what retailers all fear the most:  The Retail Battle Of The Decade has begun between Walmart & Amazon.
“While Walmart may be 10 times Amazon's size in overall sales, it has only about a tenth as much in online sales, making Walmart a distant also-ran online.” A Perilous Situation For All Retailers.
Walmart knows Amazon’s Achilles’ heel:   No Local Stores.  So, to prevail against Amazon, Walmart is unleashing their version of The Ultimate Shopping Convenience®Rapid Home Delivery.
But Amazon recognized their weakness years ago and started LOCAL Rapid Home Delivery programs in most major cities, albeit unsuccessfully – but they kept trying because they knew a huge Apocalyptic battle with Walmart was inevitable.  Today, Amazon is countering Walmart’s enormous store footprint by offering local SAME-DAY service using their TWO MILLION Third Party Sellers.
Unfortunately, major national retailers’ stores are standing in the middle of this Armageddon, the potentially final catastrophic battlefield between these opposing behemoths.  To win, Amazon and Walmart both need new customers; consequently these major retailers’ stores could become significant collateral damage without a miraculous intervention.  (See their SIX “Target Industries” charts below)
Synopsis Of AdAge Article Nov 14/11: “Walmart Brings Bricks and Mortar Battle to Amazon” (click here for full AdAge article)
Walmart competes with almost everyone in retail, but is increasingly focused on rival: Amazon.

That has put Earth’s largest retailer and Earth’s largest online retailer on a collision course for what could be the “retail battle of the decade 

Sales in electronics and general merchandise have gone from 43% of Amazon global sales only two years ago to 59% last quarter, and an even bigger 61% in North America.

Key to Walmart’s emerging e-commerce strategy is integrating store and online marketing like never before.

Walmart is using its 3,800 stores as a logistical and marketing advantage over Amazon. Last month it rolled out “Home Free” delivery, with free home shipping on orders over $45 from its stores.

Walmart plans "next- day delivery at a very economical price" using its stores as distribution centers and aimed largely at urban markets.”   (Sure beats FedEx, UPS & USPS.)
HARVARD BUSINESS ANALYSIS Oct 10/11: “Retailing Revolution: Category Killers On The Brink” (click here for full Harvard article)
Best Buy and many similar businesses didn't see the bullet coming.  (see charts below)

Initially their sales lost to Internet competitors were quite small in relation to overall business, and confined to a small number of items. And as these retailers introduced their own shopping sites, they became complacent about the impact of the Internet to their overall store model. Much like the story of the frog in the slowly boiling water, they are finding out late in the game that their physical store businesses are fundamentally unsustainable. Given the item assortments they carry, these stores are just too large. Even a robust economic recovery is unlikely to do more than delay the inevitable “restructuring”.  (Borders, Circuit City, Blockbuster, etc)

1.       Retailing generally is at a tipping point, with category killers being the first significant casualties. 

2.       Physical stores can compete by emphasizing (1) instant gratification, (2) unique shopping experiences, and (3) customized support.”  (NOTE:  The Now Mall does all 3 of these for you)
Walmart’s Timing Couldn’t Be Better. Other than Amazon, most major retailers have been struggling for years. (See Retail Behemoths’ SIX “Target Industries” charts below)
Major National Retailers can trump Amazon’s and Walmart’s newest strategy with Guerilla warfare tactics outlined below.
Walmart’s and Amazon’s newest battle strategy of Rapid Home Delivery is that of a COPY-CAT, as most retailers know.  It’s their collective Achilles’ heel. 
Major National Retailers have the advantage of thwarting both of them by joining the proven leader that has 30 years of knowledge that they do not have – patents included.  We’re leading the very powerhouse Walmart and Amazon are now BOTH trying to copy.
The NOW is the Industry Leader in Rapid Online Order Fulfillment© (ROOF) technologies & shared workforces using our 100% turnkey SuperCyberCenter© Network developed and proven during our 30 years of retail rapid fulfillment experience and with 1.3 MILLION Local Third Party Seller Stores earnestly awaiting Major National Retailer participation.   (See more details after the industry charts below)
Guerrilla Warfare StrategyMajor National Retailers can trump the behemoths by combining our seasoned mobile forces and technology together with their stores in a coordinated onslaught of superlative customer service.
The Retail Behemoths Collective Achilles’ Heel: They are COPY-CATS.  They don’t know HOW to do true “Rapid” Online Order Fulfillment (30 to 60 minutes) so they are trying to copy the easier parts  (same-day & next-day) of The Now Mall.
The Underlying Strength: We patented the Rapid Online Order Fulfillment© (ROOF) system, technologies & shared workforces which use our 100% turnkey SuperCyberCenter© Network.
Key Tactics:  Major National Retailers can join us now to benefit from our over 30 years retail rapid fulfillment experience and 1.3 MILLION Local Third Party Seller StoresCollectively, these will generate substantial ongoing “Evergreen” free cash flow to their bottom line via this unique and effective retail sales, marketing and distribution channel that complements their current multi-channel strategies.  (See more details following the SIX “Target Industries” charts below)
Only we can help these Major National Retailers aggressively and nimbly counteract the looming pincer attack by Amazon and Walmart with our patented SuperCyberCenter Network with ROOF in this totally unusual crisis period to return their store sales, profits & growth rates to 2006/2007 levels and higher. 
And, for a limited time, these retailers can also secure a competitive advantage with an Industry EXCLUSIVE enabling them to not only compete with Amazon and/or Walmart; but also with their regular local competitors.
Defend against The Four Horsemen Of The Retail Apocalypse: Inertia, Fear, Myopia, Apathy© by working with us TODAY to reverse the downward trend of their FIVE YEAR STATS (below), leaving their competitors the only option of fighting these behemoths alone and unprepared.  (Good luck to them since Webvan, McDonald’s, Borders and many others failed trying the same seemingly-simple in-house delivery approach.)
Members of their industry (see below) are in discussion with us for the exclusive rights for their branded SuperCyberCenter with ROOF.   Just Imagine where that leaves the others:  with virtually no defense in the middle of this newest Apocalyptic Battle of the decade between the two Retail Behemoths.  We urge them to place their order for their Industry exclusive with us TODAY while it’s still available.
For further details about our SuperCyberCenter with ROOF, please scroll down below the following Industry charts.
1.     “ELECTRONICS” INDUSTRY ARMAGEDDON: Top 3 Players 5-Year Results:
hhgregg +4.04%;   RadioShack -32.32%Best Buy -50.79% // AMAZON +402.13   DOW JONES -2.58%  

2.     “OFFICE PRODUCTS” INDUSTRY APOCALYPSE: Top 3 Players 5-Year Results:
Staples -45.03%, OfficeMax -90.48%, Office Depot -94.48% // AMAZON +402.13   DOW JONES -2.58%  

3.     “BOOKS, MUSIC & VIDEOS” INDUSTRY WRECKAGE: Top 3 Players 5-Year Results:
Hastings -76.25%, Books-A-Million -87.23%, Barnes & Noble -57.64%  // AMAZON +402.13   DOW JONES -2.58%  

4.     “RETAIL PHARMACY” INDUSTRY CATACLYSM: Top 3 Players 5-Year Results:
CVS +31.76%, Walgreens -22.98%, Rite Aid -71.78%  // AMAZON +402.13   DOW JONES -2.58%  

5.     “MASS MERCHANT” INDUSTRY DECIMATION: Top 4 Players 5-Year Results:
Target -8.97%  Kohl’s -23.41%, Sears Holdings -59.07%, J.C. Penney -59.39% // AMAZON +402.13   DOW JONES -2.58%  

6.     “GROCERY” INDUSTRY ANNIHILATION: Top 4 Players 5-Year Results:
Kroger +1.09%  Safeway -38.24%, SUPERVALU -76.15%  // AMAZON +402.13   DOW JONES -2.58%  

These Registered Trademarks are a glimpse of the most dynamic & powerful TRUE solution to national retailers’ current competitive nightmare – Walmart & Amazon.
The Ultimate Shopping Convenience®;   Delivered In A Flash®;   When You Just Can’t Get Out Or Have Better Things To Do®;   The Last Mile Of The Internet® 
Overview of this Decade’s TWO Biggest Retail Innovations:
1.       SuperCyberCenter© (SCC):  a HYBRID online “Marketplace” with Third Party Sellers similar to Amazon, eBay and Walmart but much more powerful:
A ‘Hybrid’ because we add a patented upgrade – we include “LOCAL”  physical stores;  restaurants; pharmacies, grocers & retailers with unique fashion and/or time-sensitive commodities as Third Party Sellers.  Not available on Amazon (or anywhere else).
This is an astoundingly lucrative new Third Party Seller profit source enabling Major National Retailers to dramatically increase their in-store sales from LOCAL cross-marketing and our powerful EVERGREEN Free Cash Flow “War Chest” program.  This locally-focused Neighborhood initiative is a strategy that Amazon, without local stores, simply cannot EVER match.  Our patents cause Walmart to try the “back-door” into a unique Hybrid business they know nothing about.
2.       ROOF (Rapid Online Order Fulfillment©): a HYBRID FedEx/UPS for their local stores AND their SCC Third Party Stores.
A Hybrid because we add our 100% Turnkey LOCAL In-Store Shopping + Rapid Delivery both usually within 30 to 60 Minutes 24 / 7 / 365 using our proprietary and excellent Shared Workforce.  No single retailer, no matter how large, can do this without Third Party Stores co-operating in sharing a “much” larger driver pool to cover their volatile Peaks & Valley periods; it takes an entire neighborhood in scope and years of experience doing it (similar to Amazon’s 10 year lead online and Walmart’s 30 year lead in-store).
This enables Major National Retailers to earn substantial income from their increased in-store sales & profits reclaimed from Amazon & Walmart (and other local competitors) due to Rapid Shopping & Delivery (30 to 60 minutes – 24 / 7 / 365) instead of same-day, next-day, or up to 10 day more expensive in-house fulfillment with FedEx/UPS delivery. 
THEN ADD their new EVERGREEN Free Cash Flow “War Chest” from all ROOF rapid fulfillment orders through their Third Party Seller storesAgain, nobody else can match this, it’s “The Last Mile Of The Internet®literally.
Another Consideration: Delivered prices of their products via ROOF can be the same or less than in-store prices and are more profitable than if delivered by UPS / FedEx since their store staff do not assemble, package or deliver ROOF orders PLUS we pay before we leave the storeROOF is 100% turnkeyWe also sponsor Free Delivery (unlike FedEx and UPS). 
Hidden Windfall:  They also save their current significant cost of the 20% to 30% returned online orders shipped by USPS, UPS or FedEx.  Our online discount coupons redeemable in-store are FAR less expensive, easier to use and faster to update than regular online daily deal sites like Groupon, which they can add to or change at any time without some else’s approval – a huge ADDITIONAL selling point for their Third Party Stores.
A.      There are 600± neighboring Third Party Stores around each of their local stores = cross-marketing and use of our shared rapid in-store shopping & delivery workforce which destroys Amazon’s and Walmart’s basic online marketing tool of same-day, next-day to 10 day home delivery.
B.      The above programs (SCC + ROOF) are available on an exclusive industry and area basis so they can immediately recover their market share from their local competitors as well as from Amazon and Walmart.
As the only major game-changing / industry-changing solution in sight, we enable them to significantly boost their share value with a proven HYBRID online LOCAL marketplace with EVERYTHING: Delivered In A Flash®  24 / 7 / 365 that nobody else can even closely match – including FedEx, UPS, Amazon. Walmart or their local competitors.
Initial ramp-up capital cost payback for their branded SuperCyberCenter with ROOF is 9 to 14 months on our conservative “Plan A” (which we are pleased to send upon request); or 6 to 9 months on our less conservative Plan B (full marketing plan); and immediate (2 to 3 months) on our aggressive Plan C (which we have already done for one of the World’s largest US retailers and can validate from their statistics in detail).  And remember, as results of their initial benchmark city roll forward, this increases the speed, payback time and Internal Rate Of Return (IRR) of ongoing ramp-up in the next cities.  Based on a very high Internal Rate Of Return, this puts this project to the top of their investment list and allows rapid national & international rollout with very little invested capital beyond the initial benchmark cities.
“To be, or not to be, that is the Question: Whether 'tis Nobler in the mind to suffer the Slings and Arrows of outrageous Fortune, Or to take Arms against a Sea of troubles”  William Shakespeare
We hope more national retailers will contact us to help defend their stores with our proven weapons recently adopted by Amazon and Walmart to provide:  The Ultimate Shopping Convenience®
Thank you,
Gail Nichols - Vice Chair

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